The Nigerian National Petroleum Company (NNPC) Limited has said the daily average importation of premium motor spirit, also called ‘petrol’ between January and August 2022 was 68 million litres on which it pays N297 per litre to subsidize.
In a statement published on Sunday, the NNPC said the total volume of petrol imported into the country was 16.46 billion litres since January 2022 which translates to an average supply of 68 million litres per day.”
The NNPC said it imported 22.35 billion litres in 2021 which translates to an average supply of 61 million litres per day.
“Rising crude oil prices and petrol supply costs above Petroleum Products Pricing Regulatory Agency (PPPRA) (now NMDPRA) cap had forced Oil Marketing Companies’ (OMCS) withdrawal from petrol import since the fourth quarter of 2017.
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In light of these challenges, NNPC has remained the supplier of last resort and continues to transparently report the monthly petrol cost under-recoveries to the relevant authorities, the statement said.
NNPC also notes that the average Q2, 2022 international market determined landing cost was $1,283/MT and the approved marketing and distribution cost of A146/litre. Furthermore, the combination of these cost elements translates to a retail pump price of N462/litre and an average subsidy of N297/litre
It also translates to an annual estimate of N46.5 trillion on the assumption of 60 million litres of daily PMS supply. This will continuously be adjusted by market and demand realities.
“NNPC shall continue to ensure compliance with an existing governance framework that requires the participation of relevant government agencies in all PMS discharge operations,” the statement said.
“This includes Nigerian Ports Authority, Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), Nigerian Navy, Nigeria Customs Service, NIMASA and all others.”
In addition, NNPC recognizes the impact of maritime and cross-border smuggling of petrol on the overall supply framework. Furthermore, NNPC acknowledges the possibilities of other criminal activities in the petrol supply and distribution value chain.
The statement said, “As a responsible business entity, NNPC will continue to engage and work with relevant agencies of the Government to curtail smuggling of petrol and contain any other criminal activities.
“We will continue to deliver on our mandate to ensure energy security for our country with integrity and transparency.”
It said, “We invite any forensic audit of the petrol supply and subsidy management framework of the NNPC.”
